CFAS - Chapter Highlights for Quiz 1
users with direct/ready access to financial information - correct answer ✔✔internal users
This branch of accounting is usually prepared in accordance with the day-to-day needs of the
management not IFRS. - correct answer ✔✔Management Accounting
users with no direct/ready acces to financial information - correct answer ✔✔external users
users who are directly affected by contents of the financial statements - correct answer ✔✔direct users
users who are indirectly affected by contents of the financial statements - correct answer ✔✔indirect
users
financial statements are the product of a broad branch of accounting called.... - correct answer
✔✔Financial Accounting
List some examples of external users. - correct answer ✔✔inactive owners
present of potential creditors
suppliers
employees
customers
government regulators
the public
List some examples of internal users. - correct answer ✔✔active owners
managers
What branch of accounting caters to the needs to internal users? - correct answer ✔✔Management
Accounting
, what is the unit of measure that is generally used in communicating accounting information? - correct
answer ✔✔monetary unit
what is the concept that separates the personality of the enterprise from that of its owners, members,
and employees? - correct answer ✔✔Accounting Entity Concept
How do direct users use financial information? - correct answer ✔✔to protect their interest in the
enterprise
How do indirect users use financial information? - correct answer ✔✔to provide advice to or protect the
interest of a direct user (investors and employees)
What is a reporting entity? - correct answer ✔✔any unit that is considered to have a personality
different from the prsonality of its owners, members, and employees.
An entity that is required or chooses to prepare financial statements
What are the four sectors of accounting? - correct answer ✔✔Government
Academe
Private
Public
What are the six branches of accounting? - correct answer ✔✔Government
Taxation
Financial
Management
Cost Accounting
What is the difference between bookkeeping and auditing? - correct answer ✔✔bookkeeping is the
mechanical part of accounting = journal entries to general ledger to trial balance to financial statements
users with direct/ready access to financial information - correct answer ✔✔internal users
This branch of accounting is usually prepared in accordance with the day-to-day needs of the
management not IFRS. - correct answer ✔✔Management Accounting
users with no direct/ready acces to financial information - correct answer ✔✔external users
users who are directly affected by contents of the financial statements - correct answer ✔✔direct users
users who are indirectly affected by contents of the financial statements - correct answer ✔✔indirect
users
financial statements are the product of a broad branch of accounting called.... - correct answer
✔✔Financial Accounting
List some examples of external users. - correct answer ✔✔inactive owners
present of potential creditors
suppliers
employees
customers
government regulators
the public
List some examples of internal users. - correct answer ✔✔active owners
managers
What branch of accounting caters to the needs to internal users? - correct answer ✔✔Management
Accounting
, what is the unit of measure that is generally used in communicating accounting information? - correct
answer ✔✔monetary unit
what is the concept that separates the personality of the enterprise from that of its owners, members,
and employees? - correct answer ✔✔Accounting Entity Concept
How do direct users use financial information? - correct answer ✔✔to protect their interest in the
enterprise
How do indirect users use financial information? - correct answer ✔✔to provide advice to or protect the
interest of a direct user (investors and employees)
What is a reporting entity? - correct answer ✔✔any unit that is considered to have a personality
different from the prsonality of its owners, members, and employees.
An entity that is required or chooses to prepare financial statements
What are the four sectors of accounting? - correct answer ✔✔Government
Academe
Private
Public
What are the six branches of accounting? - correct answer ✔✔Government
Taxation
Financial
Management
Cost Accounting
What is the difference between bookkeeping and auditing? - correct answer ✔✔bookkeeping is the
mechanical part of accounting = journal entries to general ledger to trial balance to financial statements
